UK: Disappointing manufacturing PMI data - TDS

Analysts at TD Securities note that UK’s manufacturing PMI fell to 49.4 in May, its first reading below 50 since July 2016.

Key Quotes

“Details of the report showed firms' clients working off pre-Brexit inventories, thus reducing demand for manufacturing output. New Orders were down from both foreign and domestic clients, and especially for export orders destined to Europe and Asia.”

“Manufacturing Production was the weakest in nearly 3 years, while employment fell for the second straight month. On a sectoral basis, weakness was concentrated in the intermediate and investment goods sectors, while consumer goods remained in positive territory.”